SB 449: RELATING TO CAPITAL IMPROVEMENT.

A BILL FOR AN ACT

relating to capital improvement.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that Hawaii schools are physical assets estimated to be valued at approximately $10,500,000,000.  The average age of a school building in Hawaii is sixty years.  Approximately five hundred ninety-four buildings are operated beyond their expected life.

     The legislature further finds that construction is historically expensive in Hawaii and that the industry has faced challenges related to the lingering impacts of the pandemic.  The amount of money the State spends on school-related construction and the reasons for such spending need to be informed and justified.

     The legislature also finds that Hawaii has appropriated an average of approximately $454,000,000 for capital improvement projects to the department of education each year for the past twelve years, yet no data-based process for determining how and why projects are funded and prioritized exists.

     The legislature additionally finds that Hawaii needs a planning database that can help inform spending and prioritization of capital improvement projects for school facilities in the State.

     The purpose of this Act is to establish a school capital improvement project modernization initiative in the school facilities authority to create a planning database for school facilities.

     SECTION 2.  Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to part VI, subpart C, to be appropriately designated and to read as follows:

     "§302A-     School capital improvement project modernization initiative.  (a)  The authority shall establish a school capital improvement project modernization initiative, which shall include a planning database for school facilities statewide.  The planning database shall include, at a minimum:

     (1)  A comprehensive asset inventory of school properties, buildings, facilities, and infrastructure, which shall be updated no later than June 30 of each year;

     (2)  A facilities condition index, which shall provide data and ratings on the condition of all school facilities; provided that the rating of a school facility shall be updated no less than every three years; and

     (3)  Enrollment to capacity ratio data, which shall be updated no later than December 1 of each year.

The information in the planning database may be organized by legislative district and complex area to allow legislators and stakeholders to assess needs and priorities specific to their communities.  The information in the planning database shall also be available to the public through the authority's website.

     (b)  Using the information from the planning database established pursuant to subsection (a), the school capital improvement project modernization initiative shall identify, assess, and prioritize school facilities projects using a classification system, including school facilities projects for:

     (1)  Critical infrastructure, such as school facilities projects involving:

          (A)  Fire alarm systems;

          (B)  Electrical, sewer, or water capacity;

          (C)  Roofing or structural integrity;

          (D)  Air conditioning; or

          (E)  Other infrastructure necessary for the safe operation of a building;

     (2)  Expansion, such as projects for new classrooms, buildings, or schools;

     (3)  Adding or enhancing functional adequacy, such as projects that add or enhance school administration, athletics, or other educational programs; and

     (4)  Compliance with federal and state laws.

     (c)  No later than August 15 of each year, the authority shall submit a report to the legislature, governor, board, and superintendent to assist with statewide planning and decision-making on school facilities projects.  The report shall include:

     (1)  The most current asset inventory and facilities condition index data, pursuant to subsection (a);

     (2)  Enrollment to capacity ratio data, pursuant to subsection(a), by school and geographic area;

     (3)  Prioritized statewide and geographic area lists of school facilities projects, as necessary, summarizing capital improvement project progress by district or complex area, classified pursuant to subsection (b); and

     (4)  An analysis on school capacity utilization with recommendations for optimizing utilization.

     (d)  The authority shall report information and analysis from the school capital improvement project modernization initiative to the board as necessary, but no less than once a year, to assist the board in decision making on:

     (1)  Opening new schools or closing existing schools, pursuant to section 302A-1129; and

     (2)  Repurposing schools or unused public school facilities, pursuant to section 302A-1151.5.

     (e)  For the purposes of this section, "school facilities projects" mean existing or proposed capital improvement projects for properties, buildings, facilities, or infrastructure owned by or under the control of the department or the authority."

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to be deposited into the school facilities special fund.

     SECTION 4.  There is appropriated out of the school facilities special fund the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to establish the school modernization initiative.

     The sums appropriated shall be expended by the school facilities authority for the purposes of this Act.

     SECTION 5.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 2025.

Report Title:

School Capital Improvement Project Modernization Initiative; School Facilities Authority; BOE; DOE; Appropriation

Description:

Establishes a school capital improvement project modernization initiative in the School Facilities Authority to create a planning database for school facilities.  Appropriates funds.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.